What does Errors and Omissions Insurance cover?

Errors and Omissions Insurance specifically covers claims of misrepresentation or negligence related to professional services provided by travel agents. This type of insurance is designed to protect travel professionals from legal claims that may arise if a client believes that the services they received were inadequate, incorrect, or not in line with what was promised. Such claims often occur due to mistakes in bookings, incorrect advice, or failure to provide necessary information, which can lead to financial losses for the client. Having this insurance helps agents mitigate the financial impact of legal fees, settlements, or judgments related to these claims, allowing them to operate their business with greater peace of mind.

While injury claims from clients pertain more to general liability insurance, travel cancellations typically involve different types of coverage, such as trip cancellation insurance, which protects clients from losing money on their trips. Professional development costs relate to expenses incurred for training and education rather than liability coverage for professional services. Thus, the emphasis of Errors and Omissions Insurance is squarely on protecting against issues related to client service missteps, making claims of misrepresentation or negligence the correct focus for this insurance type.